The effects of climate change are already being felt today, with the most severe impacts projected to start around 2050. Companies with proactive climate risk planning are better equipped to handle the impacts of natural disasters, while meeting incoming regulatory requirements and uncovering market opportunities for business value.

As the federal landscape around climate disclosure remains uncertain, California has forged a path as the leader in state climate regulations with the passage of SB 219 on September 27th, 2024.

The Green Claims Initiative aims to prevent greenwashing by ensuring that environmental claims made by companies about their products and services are reliable, comparable, and verifiable across the EU. 

In a landmark step toward eliminating forced labor from global supply chains, the EU has introduced the Forced Labour Regulation. This regulation is designed to prevent products made with forced labor from entering the European market, echoing similar laws like the U.S. legislation passed in 2021.

The EU Taxonomy is a classification system for economic activities aimed at empowering investors and companies to make sustainable business decisions. A cornerstone of the EU’s efforts to reach the objectives of its Green Deal, it provides common language around what “sustainability” means in order to increase investment in sustainable projects.

Sustainability reporting has surged in importance over the last decade. As pressure mounts for companies to adopt responsible practices and reduce environmental impact, reporting has become a key tool for transparency and accountability.

There are two main types of sustainability reporting to consider in order  to ensure regulatory compliance, meet market demands, and future-proof your business: Mandatory Reporting and Voluntary Reporting.

The SEC Climate Rule was proposed in 2022 to standardize climate-related disclosures for public companies in the U.S. The rule requires companies to disclose greenhouse gas (GHG) emissions and other climate-related risks to provide investors with a more transparent and reliable view of how climate change might affect their business operations and financial performance. 

ESPR aims to extend the life cycle of products, reduce waste, empower consumers with better sustainability information, and remove unsustainable products from the market. By prioritizing sustainability, circularity, and energy efficiency, ESPR seeks to drive a more sustainable future for products sold in the EU.

As legal challenges continue to delay the finalization of the SEC Climate Rule, the uncertainty around federal climate-related disclosure mandates remains. In the absence of federal leadership, states like California, Illinois and Washington have begun taking decisive steps to create their own regulation aiming to bring transparency and accountability, helping investors, regulators, and the public understand the full scope of corporate carbon footprints.

AB 1305, also known as the Voluntary Carbon Market Disclosures Act (VCMDA), aims to enhance transparency around net-zero, carbon neutrality, and emissions reduction claims. It focuses specifically on companies that rely on voluntary carbon offsets as part of their emissions reduction strategy.

CS3D aims to ensure companies are accountable for monitoring and managing their impact on human rights and the environment.

CSRD represents a major shift in the way companies must disclose their social and environmental performance, aiming to create a standardized approach to sustainability reporting across the EU. Learn about the ins and outs of CSRD to prepare your company for compliance!